Regulatory framework for basketball betting in Hong Kong submited to Legislative Council
The government proposes a 50 per cent tax on net profits from basketball betting.
Hong Kong.- Alice Mak Mei-kuen, the secretary for home affairs and youth affairs, has submitted a to the Legislative Council a proposed regulatory framework for basketball betting in Hong Kong under the Betting Duty Ordinance.
The document proposes granting the secretary the authority to issue basketball betting licences, amend the responsibilities of the Lottery Board to include such licences and implement restrictions aimed at minimising gambling-related harm, particularly among young people. The document proposes a 50 per cent tax on ‘ net profits from basketball betting in a system similar to the existing model for football betting.
The document suggests improving law enforcement against illegal betting, promoting awareness about the dangers of gambling, especially among young people and creating four counselling service centres through the Ping Wo Fund to help people with gambling harm. The proposal will be discussed at a meeting of the Legislative Council home affairs, culture and sports panel next Monday (June 9).
A survey conducted by the government has found that 94 per cent of respondents were in favour of legalising sports betting on basketball while only 3.4 per cent were opposed. The survey involved 1,063 participants.
According to the secretary for home affairs and youth affairs, those in favour believe the regulation will help stop illegal gambling. Those opposed have expressed concern that regulating the activity could lead to more young people getting involved in gambling.
Last year, Winfried Engelbrecht-Bresges, chief executive of the HKJC, said the club would be interested in incorporating NBA betting into its offerings if the government allowed it. He estimated that up to 60 per cent of the approximately 150,000 people engaging in illegal basketball betting could be redirected towards legal avenues.
The HKJC had previously put forward a proposal for an expansion of its betting operations. Engelbrecht-Bresges said illegal sports betting in Hong Kong, including horse racing, football, basketball, tennis and esports, is worth approximately HK$350bn (US$45bn) a year, with horse racing and football representing 75 per cent and basketball 15 per cent. However, he estimated that an investment of HK$1.5bn (US$191.7m) to HK$2.5bn (US$319.6m) would be required in infrastructure.
